Farm subsidy limit last chance for reform

WASHINGTON (Reuters) - The Senate's last chance to reform U.S. farm policy is to put a "hard" cap of $250,000 a year on crop subsidies, an array of environmentalists, small farm advocates and charities said on Friday.

A sponsor of the $250,000 limit, Republican Charles Grassley of Iowa, says odds favor adoption of the more stringent limit. Grain, cotton and soybean growers are allowed up to $360,000 a year now but the limit can be evaded.

Two of the five senators seeking the presidential

Senators are scheduled to debate the farm bill next week. It would oversee more the $280 billion in spending through 2012 on crop subsidies, public feeding programs, agricultural research, land stewardship, biofuels and farm exports. The bulk of the money goes to nutrition.

"The time has come for real reform that closes loopholes and caps mega-farm subsidies," said two dozen groups in a letter to senators. "The Agriculture committee bill ... would impose no reduction on the vast majority of the nation's mega-farms."